Rates for home equity lines of credit and home equity loans are not impacted by the bond market volatility of mortgage rates. The prime interest rate, at its lowest since late 2022, drives HELOCs and HELs. The national average HELOC rate is 7.25%, while the average home equity loan rate is 7.56%. Both rates are for applicants with a minimum credit score of 780 and a CLTV of 70%. Homeowners have $34 trillion in home equity as of Q3 2025, near a record high, with mortgage rates around 6%. Cash-out refinance may not be viable, so accessing home equity through a second mortgage could be a good option. Second mortgage rates, like HELOCs, are based on the prime rate plus a margin, offering flexibility in pricing. Introductory rates for HELOCs may last for six months to a year before becoming variable, usually starting at a higher rate. Home equity loans typically have a fixed rate without an introductory period. The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines. FourLeaf Credit Union currently offers a 5.99% introductory rate for 12 months on HELOCs up to $500,000. It’s important to be aware of both introductory and variable rates when shopping for lenders. The best home equity loan lenders provide a fixed rate for the repayment period, simplifying the process with just one rate to focus on. When comparing lenders, consider fees and repayment terms. It’s challenging to pinpoint a single rate due to significant variations among lenders. The current national average HELOC rate is 7.25%, while the average home equity loan rate is 7.56%. Considering a HELOC or home equity loan now allows homeowners to keep their low primary mortgage rate while accessing cash for various needs. Withdrawing the full amount from a HELOC can lead to a 30-year loan with variable rates and increasing payments over time.

Read more at Yahoo Finance: HELOC and home equity loan rates today, January 21, 2026: Lowest since late 2022